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URL:  https://boards.fool.com/assume-12-months-not-14-assume-1749-after-the-34424161.aspx

Subject:  Re: Input on BT Date:  3/1/2020  1:39 PM
Author:  aj485 Number:  312805 of 313032

Assume 12 months, not 14.

Assume 17.49% after the 0% intro for 12 months.

Assume 12 weeks to complete the side hustle even though 6-7 weeks accounted for a nice cushion to allow for uncooperative weather. Meanwhile the $6239 still drops every month until the side project is completed and this balance is zero.

Mathematically, I'm still calculating a savings of over $2000 with a no fee BT. This even assumes I DON'T get it paid off during the 0% intro period and the rate jumps to 17.49% for another 6 months.

$24,500 can stay at 13.49% and a payment of $1511 will zero it in 18 months.
Interest paid over 18 months: $2699.00

or...
$24,500 at 0% for 12 months minus ($1511 payments x 12) leaves a balance of $6,368.
$6,368 balance, rate soars to 17.49% and payments of $1330/month pays it off in 5 months.
Interest paid over 18 months: $281.00


Or...

Request* that the BT pay:

$6,325** to the 16.49% card
$9,650** to the lower balance 13.49% card
$15,180** to the higher balance 13.49% card

*Balance transfers will pay the amounts that you request in your order of preference, until the limit is maxed out. The most cost effective way to do so is to list the highest rates to lowest rates, and if there are multiple cards with the same rate - list lowest balance to highest balance.

**You should request that the BT pay the balance plus the prior month's interest in order to pay residual interest that has accrued. If you end up with a credit balance on the card(s) that get paid off, request the company send you the money and turn around and apply that money to your snowball.

You can then apply your side hustle money to your snowball, and if you happen to get all of your debts transferred to the 0% rate, you won't pay any more interest until that rate expires, other than the interest that you've already accrued on your current balances.

AJ
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